Debt Co.'s Wording In Notices Could Mislead, 3rd Circ. Says

Law360 (February 12, 2018, 7:54 PM EST) -- A Third Circuit panel on Monday revived a proposed class action alleging Allied Interstate LLC violated the law when it tried to recoup unpaid gym membership debt after the statute of limitations had expired, finding its notices could cause a reader to interpret the debt as enforceable in court.

In the unanimous, published decision penned by U.S. Circuit Judge Thomas Hardiman, the panel disagreed with the lower court’s ruling, which noted that a collection company attempting to collect time-barred debt does not violate the Fair Debt...